Egypt plans to cut fuel imports by 15% in 2026, aims to save $3.24bn

Egypt’s Ministry of Petroleum plans to reduce the country’s monthly fuel imports by 15% in 2026 as part of an effort to curb fuel subsidies and lower the cost of energy imports, Al Masry Al Youm reported on December 15. 

The move is part of the country’s ongoing efforts to enhance energy security and self-sufficiency, while managing its energy costs more efficiently amid economic challenges.

The initiative is expected to save around $3.24bn over the year. The government aims to bring down the monthly fuel import bill to $1.7bn during the summer of 2026, a reduction from the $2bn spent in the summer of 2025.

The government also plans to reduce the winter fuel import bill to $1.36bn per month in 2026, down from the current $1.6bn. The new measures are part of a broader strategy to manage the country’s energy expenditures while reducing dependency on foreign fuel. 

In parallel, Egypt is working to increase the amount of crude oil pumped to its refineries by 12%, aiming to boost domestic fuel production and substitute a portion of the fuel imports. The increase in domestic production is expected to be supported by recent oil discoveries, some of which have already been linked to Egypt’s national oil network. 

Egypt has shifted from being a net gas exporter to a significant importer due to a substantial decline in domestic production and continually rising demand for electricity, especially during the peak summer months. Its main import strategy relies heavily on pipeline gas from Israel and an increasing number of Liquefied Natural Gas (LNG) cargoes from global suppliers to cover the shortfall and maintain its own LNG export commitments.